L’Oréal Announces it's New Factory in Indonesia

L'Oréal announced today the opening of its largest factory in the world in Indonesia. The 66,000 m2 building is located about 60 kilometers from Jakarta, at the Jababeka Industrial Estate, West Java, Indonesia. With a staged investment totalling EUR 100 million (approximately IDR 1.25 trillion), this new factory will serve as the production hub for the South-East Asian region.

"As we have been successfully operating a factory In Indonesia since 1986, the country is therefore the clear choice for L'Oréal's ASEAN production hub," said Jean-Philippe Blanpain, L'Oréal's Executive Vice-President of Operations. "Building our largest factory in Indonesia once again demonstrates our dedication to providing Indonesians and the markets in the ASEAN region products with superior quality and value."

In line with the Group's ambition to reach one billion new consumers in the next ten years, the factory will respond to increased market demand in Indonesia and ASEAN, which represents new frontiers of growth for L'Oréal.

"With the highest growth of the Group in Asia Pacific, Indonesia is a key contributor to the L'Oréal objective of reaching one billion new consumers. The Jababeka plant reflects our confidence in the continuous expansion of the Indonesian market and our strong commitment to the country," said Jochen Zaumseil, L'Oréal's Executive Vice-President, Asia Pacific Zone.

State-of-the-art facility dedicated to consumer products

L'Oréal's first factory in Indonesia was established in 1986 in the suburb of Ciracas, Jakarta. Due to the tremendous growth experienced over the last 4 years, it was decided to build a new and larger facility, and to transfer all the activities to the Jababeka plant.

Making a total of 43 L'Oréal factories worldwide, the new Jababeka plant will manufacture hair and skin care products for the mass market brands, L'Oréal Paris and Garnier. 30% of the production will cater to the domestic market while 70% will be distributed to all other countries in the South-East Asian region.

In 2013, the plant will produce 200 million units and has an installed capacity of 300 million units with the potential to reach up to 500 million units per year. The plant features state-of-the-art facilities including high-speed production lines, processing tanks with automatic recipes management, a lighting system based on movement detection and an advanced technology water treatment plant which is currently under development.

Commitment to sustainable development

The Jababeka plant is the first LEED certified factory in Indonesia and has been built following LEED requirements. These consist of a US standard which defines excellence in terms of design and building construction process with regard to key aspects of sustainability including water and energy efficiencies, atmosphere management, materials and resources utilization and environmental quality.

Since 2005, L'Oréal Indonesia has reduced waste and water consumption per unit by 52%, and CO2 emissions per unit by 38%. The goal is to decrease absolute CO2emissions by 50% from 2005 to 2015 (from 2,000 to 1,000 tons).